Takeaway delivery firm Just Eat cuts first-half losses despite expansion drive

Just Eat sales rose 52% to €2.6bn, reflecting strong order growth during the coronavirus pandemic. 

Takeout food delivery firm Just Eat Takeaway has reported a better-than-expected operating loss of €190m for the first half of 2021.

Analysts in a company-compiled poll had forecast a loss before interest, depreciation and amortisation, or Ebitda, of €218m. 

Sales rose 52% to €2.6bn, reflecting strong order growth during the coronavirus pandemic. 

Figures were adjusted to reflect Takeaway's acquisition of US peer GrubHub in June.

The company generated most of the €2.6bn in first-half revenues in the US and UK -- its two single largest markets by country.

The US accounted for €909m and the UK €552m. Canada, Germany, and the Netherlands are the next largest in terms of revenues. 

Takeaway accounts for sales in Ireland - as part of a tranche of countries which includes Australia, Austria, and Belgium - generated a combined €423m in revenues in the first six months.               

Chief executive Jitse Groen said in a statement that Just Eat Takeaway.com invested significantly in operations in the first six months of this year.

"Our consumer base, restaurant selection and order frequency have strongly increased, which will lead to improved profitability going forward," Mr Groen said.

In London, the company said it has linked up with McDonald’s, Greggs, Pret A Manger, Itsu, and Chipotle and was "targeting a period of aggressive price leadership and the expansion of restaurant supply".  

The company repeated its full-year forecast for an Ebitda loss of 1%-1.5% of its gross transaction value, which was €14.1bn for the six months through June 30, compared with almost €9.7bn in the same period a year earlier.

Takeaway, which competes in various markets with Uber Eats, Deliveroo and Delivery Hero, said it intends to sell its 33% stake in iFood of Brazil. 

However, it had rejected an offer of €2.3bn as inadequate.

Reuters. Additional reporting Irish Examiner